Headlight specialist revises forecasts / Short-time working and other cost-cutting measures due to coronavirus pandemic
Inspection of a plastic diffusing lens (Photo: Hella)
The effects of Covid-19 are spreading. Since the demand for headlights has collapsed with the production halts of the largest carmakers and the supply chain disruptions – see Plasteurope.com of 20.03.2020Hella (Lippstadt / Germany; www.hella.com) is planning cost-cutting measures and has revised its forecast for fiscal 2019/2020, which runs until the end of May. According to the specialist for automotive lighting and electronics solutions, sales are now projected to be below the targeted range of EUR 6.5 bn to EUR 7 bn. The targeted EBIT margin of 6.5% to 7.5% will also be significantly undershot. The extent of the losses depends on further developments and cannot be predicted at present.

Hella already felt the first effects at the end of the third fiscal quarter in February 2020. Customer demand declined massively. Thus, according to preliminary figures, currency- and portfolio-adjusted sales in the first nine months of the current fiscal year fell by 3.7% to around EUR 4.8m compared to the same period last year. Adjusted EBIT fell 15% to EUR 347m. This results in an EBIT margin of 7.2%, which will not be sustainable due to the impact of the coronavirus. The detailed nine-month report will be published on 2 April.

Meanwhile, the management under Rolf Breidenbach has decided to reduce personnel and material costs. Hella is preparing for short-time working at its domestic locations. The expansion of short-time working to other locations is also being considered, as is temporarily shutting down production facilities. Hella has 125 locations in 35 countries worldwide, with a workforce of 39,000.
23.03.2020 Plasteurope.com [244772-0]
Published on 23.03.2020
Hella: Autozulieferer plant Kurzarbeit und SparmaßnahmenGerman version of this article...

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